The Tamil Nadu government presented an interim Budget with a marginal revenue surplus, while there were no new schemes, the fiscal deficit is projected at Rs 13,506.85 crore for the fiscal.
A number of new schemes and developmental initiatives that were part of the election promises would cost Rs 8,900 crore, said O Pannerselvam, minister for finance. This includes additional subsidy of Rs 4,500 crore to provide free rice under the Public Distribution System.
The government has secured an annual plan allocation of Rs 23,535 crore for 2011-12 representing an increase of 17.28 percent over last year. With this, our state will be able to achieve a plan outlay of Rs 91,936 crore in the 11th Five year plan, thereby exceeding the projected plan outlay by 7.72 percent, he said.
The Plan is to be implemented with an outlay of Rs 85,344 crore from 2007-12. Tamil Nadu could achieve Rs 68,401 crore in the first four years. During the Plan, Tamil Nadu set itself a target to achieve an average growth of 9 percent.
But, the growth rate in the primary and secondary sectors in the first three years of the plan period from 2007-08 were disappointing and below the national average. As a result, the state economy could achieve a cumulative growth of only 7.8 percent in the first four years," the minister said.
He said equitable development would not be possible without achieving higher growth in the primary and manufacturing sectors as these support a substantial number of people.
However, economic growth in the state was being propelled by the service sector. The government would "make the primary and manufacturing sectors the main drivers for achieving higher growth."
Bottlenecks in infrastructure development and addressing the productivity gap and through value addition in agriculture were also part of the minister's plan.
As against the 11th Plan target of 9.2 per cent, the industrial sector grew at only 4.43 percent in the first four years of the plan. As per the CMIE report, Tamil Nadu has slipped to the seventh position in attracting investments in the manufacturing sector.
He said the government would come out with a new industrial policy for 2011, besides formulating sector-specific policies for automobiles and autocomponents, bio-technology and pharma. "We will also come out with new land acquisition policy by adopting innovative methods like land pooling to create adequate land banks and to make available land for creating industrial parks and infrastructure, he said.
The state is expected to attract 22 major projects having an investment potential of nearly Rs 21,500 crore, said the finance minister. We are also identifying Manufacturing Business Investment Region, Agri Business Investment Region, Knowledge Hubs and a Special Tourism Investment Zone," he said. This project will be implemented through Public Private Partnership (PPP), he said.
The Budget projected total revenue receipt of Rs 79,413.26 crore and expenditure of Rs 78,974.48 crore with a marginal revenue surplus of Rs 438.78 crore.